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Fed Chairman has spoken … More (Fiat) money to come!

Karibu (Welcome) G&G Readers,

I read the Federal Reserve Open Market committee's quarterly statement today, and watched the first-ever press conference held by Fed Chairman Ben Bernanke...

It was business as usual. The Fed will keep interest rates low, which plays right into our GGIS Strategy and Private Equity Dividend strategies: Low interest rates make borrowing costs low for these firms.

A SHORT JOKE … “We will never embrace a strategy of trying to weaken our currency to try to gain economic advantage," Treasury Secretary Tim Geithner said yesterday at an appearance at the Council of Foreign Relations in New York.

And the punch line… a one-year chart of the U.S. dollar…

** Edification, go to: www.stockcharts.com , type in the search engine “$USD” and choose a 1 year chart. Then tell me if you think he is telling the truth or is it a joke.

I learned a long time ago, “Liars can figure, but figures don’t lie, the key is can you figure out if he/she is lying or not.”

Private equity Dividend firms take advantage of the spread between low borrowing costs and higher return on investment from mortgage bonds and private equity investments. So my advice to GGIS Subscribers on “XXXX” Investment remains the same.

*** Sign up to become a GGIS Reader and you’ll get the inside scoop on what stock I’m referencing.”

I saw no indication of what the Fed will do after it stops buying Treasury bonds on June 30. What happens after that is still anybody's guess. I'll send out an update the minute I know more.

Yesterday's press release also said the Fed will continue the $600 billion buying program through June 30. Bernanke said the Fed will eventually stop reinvesting the proceeds of maturing mortgage bonds... But that doesn't mean much to me, because the Fed can still print as much money as it wants. I see the Fed the way I always have, as an inflationary force smart investors can learn to take advantage of.

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Geithner's comments are more of the same… Just as Bernanke's comments at the Fed meeting were. But why anyone listens to these liars anymore I don't know. I've yet to hear one truthful comment from a high-ranking government official regarding our economy. And as the $USD Index chart suggests… if they're not actually "trying to weaken the currency," they're just plain incompetent.

While lying about the government's actions regarding our currency, Geithner is also busy creating a solution in case the government doesn't vote to raise the debt ceiling. (We should hit our $14.3 trillion debt limit in a few weeks.) No. 1 in Geithner's arsenal (according to this Washington Post article) is taking money from federal pension funds. This is a non-issue. Whatever money Geithner pillages, it's all coming from the same pool – our tax dollars.

Washington Post article: (click link)
http://www.washingtonpost.com/business/economy/treasury-quietly-plans-for-failure-to-raise-debt-ceiling/2011/04/21/AFmo5PtE_story.html?hpid=z1

If Geithner is forced to steal money from pension funds, it will be a blatant admission our country is broke. It would be as good as a default in the eyes of our citizens and, more important, our creditors. We all know what will happen when we hit our current ceiling… The left and right will hem and haw, then eventually raise the ceiling.

If you haven’t seen the GGIS Special “URGENT RETIREMENT REPORT,” I sent out March 2010 where I told subscribers to protect their retirement funds because the boys and gals in DC were going to be coming after them soon. Make sure you visit the GGIS private member website and download the report to see exactly what I’m talking about. (Sign up to become a GGIS Subscriber to gain access)

Bottom line: As I've explained many times… the U.S. government is now in a "one way out" situation in regards to its debt and unfunded obligations. It has made incredible promises to hundreds of millions of people. There is no political will to stop making these promises. After all, making empty promises is how politicians "advance" in life. It has borrowed trillions of dollars from foreigners. The only way out of the mess is to pay back the debts and obligations with devalued money… to pick your pocket a tiny bit each day.

Gold and silver were both up yesterday – to $1,513 and $45.66, respectively – in anticipation of Bernanke's comments. It's like Pavlov's dog in the commodities markets. When Bernanke opens his mouth, precious metals rally.

Make a choice to today to exercise that option. You can start to learn how to insulate your financial portfolio.

If you need a one-on-one consultation to learn how to implement these investments or any other on the GGIS portfolio, feel free to contact me to setup an appointment.

Until the next time!

Metta (Wishing You the Best)

Asar Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
www.gngassociates.net

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LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.